Print Oil prices today opened on a strong decline. The reason was another piece of information about the deal, OPEC. It turns out that differences still remain – and very serious. on Friday, Saudi Arabia refused to participate in the meeting with Russia and other non-OPEC countries. The meeting was scheduled for Monday. However, the problem was rather that OPEC was unable to agree on measures for the further reduction and limitation of production, and therefore with Russia to talk about.
In turn, Russian energy Minister Alexander Novak said that OPEC must first agree on a stabilisation of oil production between themselves so they could join the countries outside the cartel. That’s right, they must first decide on quotas among themselves, and then to encourage other countries to reduce oil production.
However, if you believe the latest reports from Bloomberg, OPEC is now desperately trying to save the deal. Reported, even now representatives of the two countries OPEC fly to Moscow for talks. The Minister of energy of Saudi Arabia Khalid al-falih and his colleague from Venezuela, Eulochio del Pino.
as for the Saudis, they are also at the weekend managed to do a number of interesting applications. It was about that may have to go without production cuts, but simply to limit it at the current level.
the fact that Saudi Arabia now believes that demand in 2017 will be restored, so the balancing market will be able to pass without the intervention of OPEC. This statement on Sunday made Minister of energy of Saudi Arabia Khalid al-falih.
Recall also that the consultations between OPEC and other countries was to be held today, but in the end they were canceled. Now OPEC members will meet again in Vienna, where among themselves to discuss and try to resolve differences.
I Should add that over the weekend it became known that participation in the transaction OPEC will not accept Libya. The Libyan national oil Corporation (NOC) said on Sunday. The fact that this country has suffered greatly during the civil war and now only tries to restore the production of oil.
Chairman of the Board of Directors of NOC, Mustafa Sanalla
“Libya is in such a dangerous economic situation that she will not be able to participate in reductions in OPEC production in the foreseeable future.”
speaking about the reaction of the market today trading opened fairly strong decline. But then the quotes will come out, and now a barrel of Brent is already trading above $ 47.
the Crucial OPEC meeting, we recall, is scheduled for November 30, when it becomes clear, it will be made a decision or not. However, it should be noted that in case of failure this time OPEC is very much in danger of completely losing the confidence of the market and cease to exist as a functioning organization.
Categories: Oil, Futures, Russia, World
Tagged: Vienna, Novak, OPEC, Russia, Saudi Arabia, barrel, cartel, oil
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